Chinese banks are aggressively entering the country’s USD124 billion life insurance industry as they take advantage of recently relaxed rules. This could threaten smaller insurance companies such as Great Wall Life Insurance and Sino Life Insurance. Over time it could also seriously challenge the dominance of China Life Insurance and Ping An Insurance, which between them control 60% of the life insurance market. Industrial and Commercial Bank of China (ICBC) said this month it would buy out the Chinese partner of AXA’s China joint venture. Other state lenders such as Bank of China (BOC) are taking similar measures. The takeovers are fueled by banks’ aspirations to become financial conglomerates like HSBC and may spark innovation and inject new life into the market. Entering the insurance sector offers banks an opportunity to tap into a market freer from government interference where premiums grew by a third in the first half of this year. Moreover, there is a big potential for development. The average Chinese person spends less than USD200 a year on insurance premiums, compared with more than USD4,500 in Britain.